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BizPlanBuilder v9

How to: Address Building Construction COGS & Sales

Our plan involves construction of a building. The construction will involve accumulating costs for four or five months. This will be an inventory item. Now the building itself has twenty units and when we sell each unit we will record the sale as normal. The cost of sales for each unit will be approximately 1/20 of the inventory.

The question I have for you is can your spreadsheet accumulate these costs on the asset side, while construction is going on and also relieve the inventory when the sales take place.

The concept is basically one that involves creation of a product that is created over many months and also the sales that requires multiple months to sell. The simplest example would be any skyscraper, can you product handle this type of transaction.

Answer

Yes, I presume you are using the Comprehensive financial model…

To do what you want to do, you would need to enter the costs manually (as opposed to using the tables with percentages) in the 'Assumptions: COGS' page, also enter the sale of each unit in the 'Assumptions: Sales' page. The rest is the same.

As always, we appreciate hearing your Success Stories as well as your Suggestions & Feedback.

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